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Specialty Chemicals Company Investment Opportunity in Tirupati, India

Invest in a speciality chemicals manufacturing company with 1,500+ tons capacity and stable customer base.
This transaction has concluded.
This Business is on a Premium Plan
Established 5-10 year(s)
Employees 10 - 50
Legal Entity Private Limited Company
Reported Sales USD 5.6 million
Run Rate Sales USD 5.4 million
EBITDA Margin 12 %
Industries Specialty Chemicals
Locations  Tirupati
Local Time 7:14 AM Asia / Kolkata
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 560 thousand for 20.0% stake (Native Currency: INR 50,000,000)
Reason: We are seeking investment to clear our loans and increase our operation capacity. We are looking fo... View More
Includes physical assets worth USD 2.6 million
Interested to connect with advisors
Documents
Business Overview
- Operates in the speciality chemicals sector, focusing on manufacturing and domestic marketing and is based in Tirupati.
- Prominent product offering includes sodium methoxide solution and powder, catering to a diverse range of industries such as pharmaceuticals, agrochemicals, and food processing.
- Boasts a monthly installed capacity of 1,500 tons for sodium methoxide solution and 200 tons for powder, enhancing potential for scalability.
- Current customer base of 30 to 40 clients, indicating a stable market demand and potentially strong customer relationships.
- Seasonal revenue trends were noted, with a significant drop during the first half of the year, followed by recovery and growth in the second half.
- Experienced management team led by a promoter with 35 years in the speciality chemicals industry, ensuring robust expertise and strategic direction.
- With the experienced team, the company also hires contractual employees for semi-skilled labour.
- Compliant with industry regulations, possessing Pollution Control Board license, and recognized with GST and MSME certification, underscoring commitment to operational standards.
- The company is registered in Hyderabad and operates from Tirupathi.
Products & Services Overview
The business's top-selling product:
- Sodium methoxide solution and powder.
Used in industries such as pharmaceuticals, agrochemicals, aroma chemicals, the food industry, biodiesel and optical whiteners among others.
Assets Overview
Tangible assets;
- 5-acre land and the facility worth INR 8 crore.
- Plant equipment and machinery worth INR 10 crore.
- Stock worth INR 4 crore.
The assets are worth INR 22 crore but are being offered at a discounted valuation of INR 17.1 crore.
Facilities Overview
Operates from an owned 5-acre land and the built area of the open-to-sky plant is 3,500 to 4,000 sq m. Located in Tirupathi, Andhra Pradesh.
Capitalization Overview
The business has an outstanding term loan of INR 7.2 crore, a CC limit of INR 4 crore and an LC limit of INR 2 crore.
Company is family-owned and has 2 directors with the promoter owning the majority shares.
Recent Activity
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This transaction has concluded. View similar business opportunities on SMERGERS
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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